What was the amount of franchise royalties for Management Recruiters for the year ended December 31, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| | 58,254 | 46,735 |
| | $ | 103,283 | $ 77,352 | | Total liabilities and stockholders' equity | | | |
HireQuest, Inc. Consolidated Statements of Income
| Year ended | |||||||
|---|---|---|---|---|---|---|---|
| December 31, | December 31, | ||||||
| (in thousands, except per share data) | 2022 | 2021 | |||||
| Franchise royalties | $ | 28,897 | $ | 21,317 | |||
| Service revenue | 2,055 | 1,212 | |||||
| Total revenue | 30,952 | 22,529 | |||||
| Selling, general and administrative expenses | 12,874 | 13,328 | |||||
| Depreciation and amortization | 2,040 | 1,551 | |||||
| Income from operations | 16,038 | 7,650 | |||||
| Other miscellaneous (expense) income | (2,047) | 4,570 | |||||
| Interest income | 247 | 413 | |||||
| Interest and other financing expense | (368) | (157) | |||||
| Net income before income taxes | 13,870 | 12,476 | |||||
| Provision for income taxes | 1,895 | 635 | |||||
| Net income from continuing operations | 11,975 | 11,841 | |||||
| Income from discontinued operations, net of tax | 483 | 9 | |||||
| Net income | $ | 12,458 | $ | 11,850 | |||
| Basic earnings per share | |||||||
| Continuing operations | $ | 0.87 | $ | 0.88 | |||
| Discontinued operations | 0.04 | - | |||||
| Total | $ | 0.91 | $ | 0.88 | |||
| Diluted earnings per share | |||||||
| Continuing operations | $ | 0.87 | $ | 0.87 | |||
| Discontinued operations | 0.04 | - | |||||
| Total | $ | 0.91 | $ | 0.87 | |||
| Weighted average shares outstanding | |||||||
| Basic | 13,654 | 13,494 | |||||
| Diluted |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the franchise royalties for the year ended December 31, 2022, were $28,897,000. This figure represents the total royalties Management Recruiters collected from all of its franchisees during that year.
For a prospective franchisee, this number provides context regarding the scale of royalty payments within the Management Recruiters system. It demonstrates the overall revenue generated through royalties, which is a primary income stream for the franchisor. A potential franchisee can compare this figure with previous years to identify trends and assess the financial stability and growth of the franchise system.
It's important to note that this is an aggregate number. Individual franchisees will pay royalties based on a percentage of their revenue, as detailed elsewhere in the FDD. Understanding the specific royalty structure and how it applies to an individual franchise location's revenue is crucial for assessing the financial viability of the franchise opportunity. This information, combined with other financial performance representations, will allow a prospective franchisee to forecast their potential earnings and expenses more accurately.